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Virtual PBX
From Wikipedia, the free encyclopedia

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Virtual PBX

Type

Private

Industry

Telecommunications

Founded

1997

Headquarters San Jose, California

Key people

Paul Hammond, President and CEO; Greg Brashier, Chief Operating

Officer; Stephen Lange, Founder and Chief Technology Officer

Products

Hosted PBX Phone Services

Website

www.virtualpbx.com

Coordinates:
-122.0728

372512N 1220422W / 37.4201N 122.0728W / 37.4201;

Virtual PBX is a privately held communications service provider that claims to have
invented the type of public branch exchange (PBX) technology called a virtual or hosted
PBX.[1]
A business uses PBX technology to manage phone tasks such as call routing, allowing
more than one person to be reached from a single number, voicemail, faxing, automated
greetings, conference calling, and sending phone calls to the first available person in a
department.[2]
A hosted PBX offers remote office users, small businesses, and home-based businesses
an alternative to purchasing, installing and maintaining their own PBX hardware on site.
[3] This approach allows these companies to have access to similar features that a larger
company would without the high costs associated with the purchase of on-premise PBX
equipment.[4]
Recognized as one of the leaders in its market,[5] Virtual PBXs services make use of
traditional public switched telephone network technology as well as VoIP technology.[6]
Virtual PBX also provides a service called PBX Parachute, which gives companies that
own an on-site PBX a disaster recovery backup capability to keep their phone service
running in case a power failure disrupts local service.[7][8]

[edit] History
The company was founded in San Francisco in 1997 by voice-based application
developer Stephen Lange -- now its chief technology officer -- whom the company
credits with coining the term virtual PBX.[9] Current President and CEO Paul Hammond
joined the company in 2002 from BEA Systems [9] and in 2003, company headquarters
were moved to San Jose, California.[10]
On the technology front, the company released its skills-based routing feature in 2004[11]
and in 2006, released a number of new features including AutoRoute, which allows calls

to automatically be sent directly to ACD queues, support or sales personnel, individual

extensions, or voicemail, based on the caller's area code, area code and prefix, or entire
phone number.[12] The company acquired Open Communication Systems in 2007,[13]
and in 2008, announced VoIP interoperability through native support for open-system
VoIP peering using the SIP standard.[4] Its VoIP announcement included mention of a
collaboration with Gizmo5, which was formally unveiled in March 2009.[14]
Virtual PBX has publicly commented that it has recorded record profit, revenue and
growth in customer signups year-over-year since 2002.[15] Its open-system VoIP peering
offering has won awards from technology publications Communications Solutions,
INTERNET TELEPHONY, Network Products Guide, NGN Magazine and Unified
Communications Magazine.

[edit] Offerings
Virtual PBX claims to have the lowest-cost package for a hosted PBX service among the
leading providers.[16] Its standard monthly, non-VoIP plans start at $9.99, with three
more options of increasing capabilities starting at $24.99, $44.99 and $94.99. Its VoIP
package, called iVPBX, starts at $49.99.[17]
Virtual PBX Complete is the companys end-to-end hosted phone solution for small and
midsize companies.[18][19] The services works as either an inbound call router to
existing phones (mobile) or they can set up a VoIP service with lines and phones.[20]
Virtual PBX includes dial-tone service, optional VoIP phones, conferencing, machine-less
faxing, voicemail with phone, online, and email retrieval, call recording, and an autoreceptionist function with customizable greetings. [19] Pricing on its unlimited plans start
at $19.99 per user, per month[21] or can use limited minutes each month for $9.99 per
user, per month.[22]
Other companies that offer hosted PBX services include Vocalocity, Grasshopper
(formerly GotVmail), FonGenie, Ringcentral, PhonePeople and Phone.com.[23]
A private branch exchange (PBX) is a telephone exchange that serves a particular
business or office, as opposed to one that a common carrier or telephone company
operates for many businesses or for the general public. PBXs are also referred to as:

PABX - private automatic branch exchange

EPABX - electronic private automatic branch exchange

PBXs make connections among the internal telephones of a private organizationusually

a businessand also connect them to the public switched telephone network (PSTN) via
trunk lines. Because they incorporate telephones, fax machines, modems, and more, the
general term "extension" is used to refer to any end point on the branch.
PBXs are differentiated from "key systems" in that users of key systems manually select
their own outgoing lines, while PBXs select the outgoing line automatically. Hybrid

systems combine features of both.

Initially, the primary advantage of PBXs was cost savings on internal phone calls:
handling the circuit switching locally reduced charges for local phone service. As PBXs
gained popularity, they started offering services that were not available in the operator
network, such as hunt groups, call forwarding, and extension dialing. In the 1960s a
simulated PBX known as Centrex provided similar features from the central telephone
exchange.
Two significant developments during the 1990s led to new types of PBX systems. One
was the massive growth of data networks and increased public understanding of packet
switching. Companies needed packet switched networks for data, so using them for
telephone calls was tempting, and the availability of the Internet as a global delivery
system made packet switched communications even more attractive. These factors led to
the development of the VoIP PBX. (Technically, nothing was being "exchanged" any
more, but the abbreviation PBX was so widely understood that it remained in use.)
The other trend was the idea of focusing on core competence. PBX services had always
been hard to arrange for smaller companies, and many companies realized that handling
their own telephony was not their core competence. These considerations gave rise to the
concept of hosted PBX. In a hosted setup, the PBX is located at and managed by the
telephone service provider, and features and calls are delivered via the Internet. The
customer just signs up for a service, rather than buying and maintaining expensive
hardware. This essentially removes the branch from the private premises, moving it to a
central location.

[edit] History
The term PBX was first applied when switchboard operators ran company switchboards
by hand. As automated electromechanical and then electronic switching systems
gradually began to replace the manual systems, the terms PABX (private automatic
branch exchange) and PMBX (private manual branch exchange) were used to
differentiate them. Solid state digital systems were sometimes referred to as EPABXs
(electronic private automatic branch exchange). Now, the term PBX is by far the most
widely recognized. The acronym is now applied to all types of complex, in-house
telephony switching systems, even if they are not private, branches, or exchanging
anything.
PBXs are distinguished from smaller "key systems" by the fact that external lines are not
normally indicated or selectable at an individual extension. From a user's point of view,
calls on a key system are made by selecting a specific outgoing line and dialing the
external number. A PBX, in contrast, has a dial plan. Users dial an escape code (usually a
single digit; often the same as the first digit of the local emergency telephone number)
that connects them to an outside line (DDCO or Direct Dial Central Office in Bell System
jargon), followed by the external number. Some modern number analysis systems allow
users to dial internal and external numbers without escape codes by use of a dialplan
which specifies how calls to numbers beginning with certain prefixes should be routed.

[edit] System components

A PBX often includes:

The PBXs internal switching network.

Microcontroller or microcomputer for arbitrary data processing, control and logic.
Logic cards, switching and control cards, power cards and related devices that
facilitate PBX operation.
Stations or telephone sets, sometimes called lines.
Outside telco trunks that deliver signals to (and carry them from) the PBX.
Console or switchboard allows the operator to control incoming calls.
Uninterruptible power supply (UPS) consisting of sensors, power switches and
batteries.
Interconnecting wiring.
Cabinets, closets, vaults and other housings.

[edit] Current trends

One of the latest trends in PBX development is the VoIP PBX, also known as an IP-PBX
or IPBX, which uses the Internet Protocol to carry calls. Most modern PBXs support
VoIP. ISDN PBX systems also replaced some traditional PBXs in the 1990s, as ISDN
offers features such as conference calling, call forwarding, and programmable caller ID.
However, recent open source projects combined with cheap modern hardware are sharply
reducing the cost of PBX ownership.
For some users, the private branch exchange has gone full circle as a term. Originally
having started as an organization's manual switchboard or attendant console operated by a
telephone operator or just simply the operator, they have evolved into VoIP centres that
are hosted by the operators or even hardware manufacturers. These modern IP Centrex
systems offer essentially the same service, but they have moved so far from the original
concept of the PBX that the term hardly applies at all.
Even though VoIP gets a great deal of press, the old circuit switched network is alive and
well, and the already bought PBX's are very competitive in services with modern IP
Centrexes. Currently, there are four distinct scenarios in use:

PBX (Private and Circuit Switched)

Hosted/Virtual PBX (Hosted and Circuit Switched) or traditional Centrex
IP PBX (Private and Packet Switched)
IP Centrex or Hosted/Virtual IP (Hosted and Packet Switched)

Since in reality people want to call from the IP side to the circuit switched PSTN
(SS7/ISUP), the hosted solutions usually have to maneuver in both realms in one way or
another. The distinctions are seldom visible to the end user.

[edit] Home and small business usage

Historically, the expense of full-fledged PBX systems has put them out of reach of small
businesses and individuals. However, since the 1990s many small, consumer-grade and
consumer-size PBXs have become available. These systems are not comparable in size,
robustness or flexibility to commercial-grade PBXs, but still provide many features.
The first consumer PBX systems used analog (POTS) telephone lines, typically
supporting four private analog and one public analog line. They are the size of a small
cigar box. In Europe these systems for analog phones were followed by consumer-grade
PBXs for ISDN. Using small PBXs for ISDN is a logical step, since the ISDN basic rate
interface provides two logical phone lines (via two ISDN B channels) which can be used
in parallel. Small, entry-level systems are also extremely cheap (e.g. US$100). With the
adoption of VoIP by consumers, consumer VoIP PBXs have appeared, with PBX
functions becoming simple additional software features of consumer-grade routers and
switches.
Open source projects have provided PBX-style features since the 1990s. These projects
provide extreme flexibility and features, including the means to inspect and change the
inner working of a PBX. Lowered entry barriers for new manufacturers created business
opportunities for newcomers.

[edit] PBX functions

Functionally, the PBX performs four main call processing duties:

Establishing connections (circuits) between the telephone sets of two users (e.g.
mapping a dialed number to a physical phone, ensuring the phone isn't already
busy)
Maintaining such connections as long as the users require them (i.e. channelling
voice signals between the users)
Disconnecting those connections as per the user's requirement
Providing information for accounting purposes (e.g. metering calls)

In addition to these basic functions, PBXs offer many other calling features and
capabilities, with different manufacturers providing different features in an effort to
differentiate their products. Common capabilities include (manufacturers may have a
different name for each capability):

Auto attendant
Auto dialing
Automatic call distributor
Automated directory services (where callers can be routed to a given employee by
keying or speaking the letters of the employee's name)
Automatic ring back
Call accounting

Call blocking
Call forwarding on busy or absence
Call park
Call pick-up
Call transfer
Call waiting
Camp-on
Conference call
Custom greetings
Customised Abbreviated dialing (Speed Dialing)
Busy Override
Direct Inward Dialing
Direct Inward System Access (DISA) (the ability to access internal features from
an outside telephone line)
Do not disturb (DND)
Follow-me, also known as find-me: Determines the routing of incoming calls. The
exchange is configured with a list of numbers for a person. When a call is
received for that person, the exchange routes it to each number on the list in turn
until either the call is answered or the list is exhausted (at which point the call
may be routed to a voice mail system).
Interactive voice response
Music on hold
Night service
Public address voice paging
Shared message boxes (where a department can have a shared voicemail box)
Voice mail
Voice message broadcasting
Welcome Message

[edit] Interface standards

Interfaces for connecting extensions to a PBX include:

POTS (plain old telephone service) - the common two-wire interface used in most
homes. This is cheap and effective, and allows almost any standard phone to be
used as an extension.
proprietary - the manufacturer has defined a protocol. One can only connect the
manufacturer's sets to their PBX, but the benefit is more visible information
displayed and/or specific function buttons.
DECT - a standard for connecting cordless phones.
Internet Protocol - For example, H.323 and SIP.

Interfaces for connecting PBXs to each other include:

proprietary protocols - if equipment from several manufacturers is on site, the use

of a standard protocol is required.
ISDN PRI - Runs over T1, 23 bearer channels + 1 signalling channel

QSIG - for connecting PBXs to each other, usually runs over T1 (T-carrier) or E1
(E-carrier) physical circuits.
DPNSS - for connecting PBXs to trunk lines. Standardized by British Telecom,
this usually runs over E1 (E-carrier) physical circuits.
Internet Protocol - H.323, SIP and IAX protocols are IP based solutions which can
handle voice and multimedia (e.g. video) calls.

Interfaces for connecting PBXs to trunk lines include:

standard POTS (plain old telephone service) lines - the common two-wire
interface used in most domestic homes. This is adequate only for smaller systems,
and can suffer from not being able to detect incoming calls when trying to make
an outbound call.
ISDN - the most common digital standard for fixed telephony devices. This can be
supplied in either Basic (2 circuit capacity) or Primary (24 or 30 circuit capacity)
versions. Most medium to large companies would use Primary ISDN circuits
carried on T1 or E1 physical connections.
RBS (robbed bit signaling) - delivers 24 digital circuits over a four-wire (T1)
interface.
Internet Protocol - H.323, SIP, MGCP, and Inter-Asterisk eXchange protocols
operate over IP and are supported by some network providers.

Interfaces for collecting data from the PBX:

Serial interface - historically used to print every call record to a serial printer.
Now an application connects via serial cable to this port.
Network Port (listen mode) - where an external application connects to the TCP or
UDP port. The PBX then starts streaming information down to the application.
Network port (server mode) - the PBX connects to another application or buffer.
File - the PBX generates a file containing the call records from the PBX.

The call records from the PBX are called SMDR, CDR, or CIL. It is possible to use a
Voice modem as FXO card.

[edit] Hosted PBX systems

A hosted PBX system delivers PBX functionality as a service, available over the Public
Switched Telephone Network (PSTN) and/or the internet. Hosted PBXs are typically
provided by the telephone company, using equipment located in the premises of the
telephone company's exchange. This means the customer organization doesn't need to
buy or install PBX equipment (generally the service is provided by a lease agreement)
and the telephone company can (in some configurations) use the same switching
equipment to service multiple PBX hosting accounts.
Instead of buying PBX equipment, users contract for PBX services from a hosted PBX
service provider, a particular type of application service provider (ASP). The first hosted
PBX service was very feature-rich compared to most premise-based systems of the time.

In fact, some PBX functions, such as follow-me calling, appeared in a hosted service
before they became available in hardware PBX equipment. Since that introduction,
updates and new offerings from several companies have moved feature sets in both
directions. Today, it is possible to get hosted PBX service that includes far more features
than were available from the first systems of this class, or to contract with companies that
provide less functionality for simple needs.
In addition to the features available from premises-based PBX systems, hosted-PBX:

Allows a single number to be presented for the entire company, despite its being
geographically distributed. A company could even choose to have no premises,
with workers connected from home using their domestic telephones but receiving
the same features as any PBX user.
Allows multimodal access, where employees access the network via a variety of
telecommunications systems, including POTS, ISDN, cellular phones, and VOIP.
This allows one extension to ring in multiple locations (either concurrently or
sequentially).
Supports integration with custom toll plans (that allow intra company calls, even
from private premises, to be dialed at a cheaper rate) and integrated billing and
accounting (where calls made on a private line but on the company's behalf are
billed centrally to the company).
Eliminates the need for companies to manage or pay for on-site hardware
maintenance.
Allows scalability so that a larger system is not needed if new employees are
hired, and so that resources are not wasted if the number of employees is reduced.

[edit] Mobile PBX

A mobile PBX is a hosted PBX service that extends fixed-line PBX functionality to
mobile devices such as cellular handsets, smartphones and PDA phones by provisioning
them as extensions. Mobile PBX services also can include fixed-line phones. Mobile
PBX systems are different from other hosted PBX systems that simply forward data or
calls to mobile phones by allowing the mobile phone itself, through the use of buttons,
keys and other input devices, to control PBX phone functions and to manage
communications without having to call into the system first.
A mobile PBX may exploit the functionality available in smartphones to run custom
applications to implement the PBX specific functionality.
In addition, a mobile PBX may create extension identifiers for each handset that allow to
dial other cell phones in the PBX via their extension shortcut, instead of a PSTN number.

IP-PBX
An IP PBX handles voice signals under Internet protocol, bringing benefits for computer
telephony integration (CTI). An IP-PBX can exist as physical hardware, or can carry out

its functions virtually, performing the call-routing activities of the traditional PBX or key
system as a software system. The virtual version is also called a "Soft PBX".

Virtual PBX Puts a Professional Spin on

VoIP
By Kathryn Vercillo, PCWorld
As businesses of all sizes begin to rely on VoIP (Voice over Internet Protocol), the virtual
PBX option has become a widely popular choice. A virtual PBX arrangement, in which a
telephony system is provided through an Internet download and then managed by an
outside service, offers a low-cost and easy-to-set-up means for a business to use VoIP
services. Such a system can assist companies and solo entrepreneurs in creating a more
professional image that lets them grow their businesses more quickly.

Yet for businesses searching for a virtual PBX provider, the options can be daunting.
Some services excel in providing businesses with a diverse range of calling features but
make it difficult to combine those features without increasing the cost of the calling plan
significantly. Other providers may offer basic services at a low cost but might be unable
to grow with the business's need for enhanced calling features.
Before you can choose a virtual PBX provider, as well as the plan appropriate for your
business, you should first understand what services are available and how they work.

What Is Virtual PBX?

PBX is the commonly used term for a private branch exchange, a telephone exchange
system that serves one business. Originally a PBX was designed to allow companies to
control their phone systems through in-house operators. Today, instead of just connecting
calls, these systems also connect fax machines, computer modems, and other types of
technology that route through the phone lines.
Businesses embracing VoIP were, from the start, highly interested in making use of PBX
systems, but they had to find a way to do so that didn't tap their resources. The solution
has been to use "hosted PBX" systems, in which an outside company manages the private
VoIP system; instead of the telephone exchange system's being located at the business, it
is located at the site of the VoIP host. This arrangement allows a small business to take
advantage of a comprehensive VoIP system without having to maintain a staff to keep
that system running.
Just as VoIP systems have begun to offer a variety of features, virtual PBX providers have

evolved to supply additional services, such as messaging, call-forwarding, and callwaiting options, as well as advanced calling features such as automatic dialing. Virtual
PBX hosting also offers advanced features that are unique to the integration of the phone
and computer.
For example, many providers offer Outlook integration so that users can access e-mail
address books through one location. Additionally, many services offer click-to-call
widgets, which appear as buttons on the business's Web site or social networking profile;
when a customer clicks the button, the two parties connect by phone. This is a major
feature that helps businesses move seamlessly between online and voice interaction.
On a simpler level, the integration of voice and data features allows for ease of
communication within the business itself. Since virtual PBX services host video, voice,
and data conferencing, a company can achieve remote collaboration without investing
in any additional software or hardware. Moreover, virtual PBX systems provide an online
means of tracking call data, which can assist with billing and budgeting.
Among a number of other benefits, virtual PBX requires no extra hardware and little
training; as a result, it entails lower startup costs for the business. A virtual PBX setup
might not be the right solution for every business, however. For example, companies
requiring automatic call distribution may find that their options are limited on a virtual
PBX; although ACD is available through most virtual PBX systems, it tends to be a
simplified version that could be insufficient for businesses regularly routing calls to
different areas of the company.

Assessing the Providers

The growing demand for virtual PBX has led to an increase in the number of VoIP
companies offering the service. Each company provides the same basic service but has
unique pros and cons.
Keep Your PBX, But Save With SIP Phone Calls
Currently the top five virtual PBX providers in the market are GotVMail, Packet8,
RingCentral, Vocalocity, and VoiceNation. RingCentral and VoiceNation have
distinguished themselves in creating the impression that a small business is bigger than it
is through the use of certain VoIP features such as call-center functions. In contrast,
GotVMail has set itself apart as an ideal service for the solo entrepreneur who doesn't
have a lot of money to spend on advanced features but still needs basic VoIP functions.
Vocalocity focuses less on the specific services provided than it does on the cost of its
service. It stands out as a leader in lowering the overall calling costs for all types of
businesses. Packet8 also emphasizes lower costs but distinguishes itself from Vocalocity
by concentrating on features as well. Its most outstanding benefit is that it offers
scalability, allowing you to get the various services you need at an affordable rate as your

business grows.
Each company has a different feature that makes it particularly useful to certain
customers over others. For example, one of the main advantages of virtual PBX is its
ability to offer reduced calling costs on long-distance and international calls. The
company that does best in this area overall is Vocalocity, mainly because it eliminates the
long-distance charge and offers a low-cost rate for calls through the system. In contrast
with the policies of other companies, Vocalocity's rates do not differ significantly based
on the area you are calling, which is the main reason that it can lower costs for all types
of businesses.
Another great feature of VoIP that should appeal specifically to small businesses is its
potential to increase the professional credibility of the company by helping it appear
larger than it is. One of the major leaders in developing and promoting this type of
approach to VoIP is RingCentral, which focuses on providing services such as call-center
features. Because of this approach, RingCentral is a favorite among small businesses
trying to get a toehold in their industry--it serves a niche need in the VoIP community.
VoiceNation is another virtual PBX VoIP provider that succeeds in this regard. It
promises to give the impression that employees working in remote locations are all
situated in one office, and small businesses that use this company have reported that it
lives up to that claim. For businesses that operate primarily through freelance contractors
and work-at-home staff, this service is a way to present clients with a united front despite
the lack of a single shared office space.
Packet8 excels in its ability to set up a virtual call center, and it puts emphasis on its
service's scalability, offering calling features and plans designed to meet the needs of
growing and changing businesses. In contrast, GotVMail may be perfect for the small
entrepreneur who requires only a few basic services, but because it is a smaller company
it cannot accommodate the services that an expanding business may seek.
To determine the best plan for your business, assess your calling needs and do research
on which VoIP providers offer combinations of your desired features at the lowest rate.
The main thing to consider is whether you can take advantage of features other than
simple voice calling. You want to be able to integrate your voice system with your
computer--that's why you're routing calls through the computer in the first place. Look at
providers that offer Outlook e-mail integration, data features (such as push-to-e-mail
voice messaging), and videoconferencing features. Without those things, you have just a
basic phone system.
When researching, seek out companies that have several set calling plans. For example,
RingCentral offers four levels of plans designed for businesses of varying size. The
company's lowest-level plan, which costs only $15 per month, allows you to connect 5
people to the line and to use a total of 100 minutes per month. In contrast, the third of
RingCentral's four plans costs $50 per month and gives you 20 connections and 1000
total minutes. Both plans offer the same basic features, including voice mail that you can
push to e-mail and a click-to-call widget for your Web site. The more-advanced plan also
gives you a separate fax number and a dial-by-name directory.

RingCentral's four-tiered pricing system makes choosing a suitable plan fairly easy, but it
doesn't give you the means to change specific features or add the ones you desire. In
contrast, Packet8 offers 13 different calling plans at various prices with a range of
features designed to express the scalability of its VoIP services. While the wide selection
gives you more options, it can make your decision more difficult because you have so
much information to sift through.
In addition to choosing a good basic rate for your plan, make sure to review carefully the
number of minutes your plan includes, as well as the cost of calls that exceed those limits.
For instance, RingCentral and GotVMail both have plans that cost $50 per month and
cover 1000 minutes, but the additional per-minute rate for RingCentral is 4.8 cents, while
for GotVMail it's 5.8 cents. GotVMail, however, offers more features with its calling
plan, so the extra per-minute cost may be worth it to some customers.
Ultimately a virtual PBX system should reduce the need for a small business to focus on
managing its calls, and it should limit the stress that an advanced calling system can place
on a business. And businesses that have remote employees or work in multiple locations
may find that using a virtual PBX system to host teleconferences is an easy and efficient
way to connect everyone in the company.